Analysis

Lean Systems

Sims Metal Management operates accordingly to a lean system and follows many aspects 

of a lean system strategically to maximize profits. Although Sims deals with reducing 

waste, they also produce waste of their own. 

8 TYPES OF WASTE
OVERPRODUCTION

Sims eliminates overproduction by delaying 

ship dates at all feeder facilities until they are at appropriate weights. This delay also 

eliminates unneeded transportation costs. 

TRANSPORTATION 
Their transportation costs are also strictly cut 

down by shipping all feeder yards to one central hub conveniently located within all of 

them. 

WAIT
While waiting for shipments of customers to drop off material, employees cut down on wait time by processing material, cleaning the facility and maintaining equipment.

UNDER UTILIZING EMPLOYEES
 Employees from different sections of the yard are knowledgeable enough to process non-ferrous material, clean up facilities, inspect equipment and deal with customers face to face. All employees are certified to drive forklifts and are certified in minor aspects of the industry to help maximize their working abilities.

INAPPROPRIATE PROCESSING 

Sims cuts down on processing by training all staff to process at the feeder yard. As material sits at the feeder yard, it is sorted so that when it arrives at the final shipping area, it is easier to deal with. Another way Sims eliminates processing is selling their scrap by copper, brass or aluminum content. Commodities are sold as is to the buyer where they in return process and pay by content percentage.

INVENTORY
Sims cuts down on inventory problems by holding material until full 

loads are ready to ship. In particular, carloads are not shipped from Noble Street until 

there is at least 75,000 gross pounds are ready. This ensures the company’s ability to get 

the most out of their trucking.  

 MOTION
One particular way Sims cuts down on a waste of motion is offering a better price for material at their larger yards. The customer will get a slightly better price at the larger yard because that material in exchange will not have to be transported unlike material purchased at a feeder yard. 

DEFECTS
Sims tries to cut back any defects as much as possible but when there are defects, Sims breaks the material down as much as possible and sells it as the best grade possible.

PROCESS CONSIDERATIONS
PUSH/PULL METHOD 

Sims Metal Management works on a Push and Pull method. They work accordingly with 

the Push method because they offer cash for unwanted metals yet they require the Pull 

from the consumer for the manufacturing of new products with the recycled metal they 

sell.

The process Sims follows is extremely important as it can help maximize profits and 

prevent delays or injuries within the company. 

FLEXIBLE WORKFORCE
Sims has a flexible workforce within the 

yard. All employees are knowledgeable enough to process and handle all scrap, light machinery and deal with customers. This workforce enables the staff to continuously be working, making money and 

cut down on wasted time. 

AUTOMATION
The automation of their process makes a job easier for the 

employee and creates less stress. All buying, selling and transferring is done 

electronically on a computer operating system. Car processing is also completed using 

automated machinery to reduce time spent and money. 

5S
Sims must follow the 5S system 

to create the most earnings. All scraps are sorted to their commodity, straightened into an 

appropriate area for machinery, the facilities are shined and cleaned to prevent injuries, 

working processes are standardized to cut wasted employee time and the company 

sustains the prior 4S’s with meetings every morning.  

PREVENTATIVE MAINTENANCE 

An extremely important process 

consideration is preventative maintenance. Every morning after a team meeting, the 

employee that works with his or her appropriate machinery is responsible for handing in 

an inspection report. This will prolong the life of machinery and prevent any injuries to 

employee or customer. The manager is constantly walking the yard for other 

maintenance.




Sustainability

Sims Metal Management is a company that is completely geared to a sustainable future. 
Recycling is the promise to a sustainable future but it also leaves it’s own train of 


As a recycling company, its number one focus is in fact recycling. Not only does 
recycling metal, electronics and other waste make money but it also promises a more 
sustainable way of living with a greener future. 

SUSTAINABILITY EFFORTS ACROSS THE ORGANIZATION

Sims is able to balance their social responsibilities, environmental responsibilities and
financial importance. By doing so, they have created the world’s largest metal and 
electronic recycling company devoted to sustainability. 

ENVIRONMENTAL
The sustainability within Sims 
includes their protection of the environment. At every facility, drain and waterways are 
protected with cotton filters and hay bales. Also protecting the environment is the 
limitation the company puts on the running of machinery. Any machinery running on 
fossil fuels is limited by hours per week. As a company, they improve their productivity 
within the facilities by using their employees for various tasks. The company also runs 
deep sea ports 24 hours a day to supply the demand. 

RISK MINIMIZATION
Minimizing risks is very important 
in the recycling industry as errors and injuries seem to be very common. All yards are 
expected to have daily safety meetings prior to the start of the workday. In addition to 
meetings, all repairs on machinery are to be locked out by 2 or more people with the 
manager to reduce injuries. Fall protection and spotters are also used in high elevation 
and low elevation repairs. 

INNOVATION
The last way Sims practices sustainability within the 
organization is constantly upgrading machinery. More innovative machinery such as a 
new shredder may be able to recycle more material with more efficiency. To cut down on pollution while recycling, Sims limits all 
machinery to hourly running times per the week. Any machine such as the car compactor 
at Noble Street, running on fossil fuels, can only run for a limited time and must be 
recorded. When possible, smaller forklifts and trucks are ran on propane. 

REDUCING CARBON FOOTPRINTS
Reducing a 
carbon footprint of their actions, Sims promotes a cleaner process for the environment. 
Sims strategically places their yards within close distance to their larger ports for 
international shipping to reduce time, money and carbon emissions in transportation. All 
feeder yards are within a 20 mile radius of their larger processing area.